1. of STATEINBOUND2014THE DATA YOU NEED TO BUDGET, PLAN, EXECUTEAND MEASURE INBOUND MARKETING AND SELLING.
2. HUBSPOT State of Inbound 2014 2 Introduction TABLE OF CONTENTS CH. 1 CH. 2 Budgeting for Inbound CH. 3 Planning for Inbound Executing for Inbound Measuring for Inbound Survey Methodology CH. 4 CH. 5 CH. 6
3. IntroductionCHAPTER ONE1
4. HUBSPOT State of Inbound 2014 4 For the past five years, HubSpot has published the findings from its annual survey, which probes marketers on their challenges, priorities, tactics and results, in a popular report branded The State of Inbound Marketing. The series tracks the practice of inbound marketing the art and science of drawing visitors to your company on their own terms versus obtrusively pushing your messages onto them from its humble two guys in a garage (or, in this case, two guys in business school) beginning up through last years 164- page leviathan. For this years report, we followed many of the same processes as in the past. We surveyed thousands of marketers (see Audience Composition graphic) and asked a blend of repeat questions (for trending data) and new ones (to keep pace with emerging marketing trends). We produced nearly a hundred graphs, which we winnowed down to 40 or so compelling data narratives that we believe will help readers improve top-line performance. Yet as similar as our objectives and methodology were, there are two significant differences in this years report beginning with the title itself. Weve dropped marketing from the title to reflect a sea change. Inbound is no longer limited to marketing. Businesses now turn to inbound methodologies to power sales (25%) and even customer service (10%). Certainly the marketing use-case remains foremost, but make no mistake: Inbound has become an interdepartmental phenomenon. The report also straddles calendar years, 2014 to 2015. It is comprised of data from INTRODUCTION About State of Inbound a mid-year survey that posed questions about full-year programs. As such, the findings and guidance remain current well into 2015. As much as we hope you enjoy reading this report, its even more important that you use it. Its meant to be a functional document. Print it and mark it up. Share it with your boss, your head of sales, the rep who always beats her numbers (or, better still, the rep who is struggling to hit quota), maybe even your customer support team. Please remember that the data is based on self-reported survey responses. Consider the findings to be directional. Weve organized the data into four self-contained sections: budgeting, planning, execution and measurement. Theres no need to read the report linearly. Dive into whichever section corresponds to your greatest needs, and save the rest for later. You want to understand how to maximize your budget? Read the Budgeting chapter. Looking to report to your leadership the same metrics top performers report to theirs? The Execution chapter has you covered. Audience Composition If there exists a modern marketing report thats based on survey data from a larger, more diverse audience, then wed like to know about it. We believe State of Inbound is the definitive report on inbound business in large part because of the audience composition, which weve visualized in the graphic below.
5. HUBSPOT State of Inbound 2014 5 Executive and above Manager and below State of Inbound Audience Composition 68% B2B 21% B2C 5% NONPROFIT $250,001 - $1M $1M - $10M $10M - $500M $500M - $1B Prefer not to say Less than $250,000 COMPANY SIZE BY ANNUAL REVEUE COMPANY SIZE BY NUMBER OF EMPLOYEES TYPES OF ORGANIZATIONS RESPONDENTS BY CAREER Marketers Sales Professionals VERTICAL MARKETS RESPONDENT JOB LEVEL 11 to 25 26 to 200 201 to 1000 More than 1000 Less than 10 Information Technology & Services Marketing Agencies Education Healthcare & Medical Remaining 11 Industries Represented Software 1,723 631 69% 31% Less than $250,000 $250,001 - $1M $1M - $10M $10M - $500M $500M - $1B Prefer not to say Less than 10 11 to 25 26 to 200 201 to 1000 More than 1000 HubSpot Partner HubSpot Customer Not a HubSpot Partner Not a HubSpot Customer Software Information Technology & Services Marketing Agencies Education Healthcare & Medical Remaining 11 Industries Represented Executive and above Manager and below 5% NONPROFIT 21% B2C 68% B2B 78% 15% 1% 6% 3,570 RESPONDENTS 5% 44% 4% 34%
6. HUBSPOT State of Inbound 2014 6 The Six Most Important Takeaways If you are pressed for time, heres the TL;DR-style executive summary: We noticed six clear and consistent trends when analyzing the data. They are: Inbound unlocks ROI; ROI unlocks budget. If you are running an inbound marketing program and not tracking ROI, you are doing your company and your career a disservice because inbound marketers who measure ROI are more than 12 times more likely to be generating a greater as opposed to lower year-over-year return. 1.) INBOUND ROI IMPACT YEAR OVER YEAR Inbound marketers that measure ROI are enjoying major impact Inbound Marketing ROI % of Respondents Greater ROI than the previous year Lower ROI than the previous year About the same as the previous year 0 5 10 15 20 25 30 35 40 Proving that you are increasing return is important for several reasons, most notably the positive impact it has on budget. No single factor had a greater impact on budget positive or negative than did past success with inbound. Improving ROI may even safeguard your budget against factors beyond your control, like the economy itself.
7. HUBSPOT State of Inbound 2014 7 FACTORS INFLUENCING INBOUND BUDGET CHANGE Proving success is key to securing more budget Reasons for Change % of Respondents Lower Inbound Marketing Budget Higher Inbound Marketing Budget Economy Change in management Past success with inbound marketing Past failure with inbound marketing 0 10 20 30 40 50 60 Getting found is priority #1 (and #2 and #3) for high performers. We zoomed in on the segment of inbound marketers who are generating positive ROI (high performers) to see if they prioritized different types of projects than low performers. As you will see in the Measurement chapter, high performers are emphasizing programs designed to get their content, and by extension their company, found. In order, blogging, organic search, and content amplification top the list. Blogging appears to have the most substantial impact on performance. Given that marketers who blog are 13x more likely to drive positive ROI, it shouldnt be a surprise that the tactic tops high performers lists of most important inbound projects. 2.) THE IMPACT OF BLOGGING ON INBOUND ROI Marketers who have prioritized blogging are 13x more likely to enjoy positive ROI 13x
8. HUBSPOT State of Inbound 2014 8 Data facilitates alignment. If inbound marketing were a sports team, data would be the coach. The chart below depicts remarkably tight alignment between marketing practitioners and their leaders (director and above title). Data is objective. Its immune to the feelings and instincts that drove the previous era of arts and crafts marketing. 3.) TOP MARKETING PRIORITIES BY ROLE Strong alignment exists between marketing practitioners and leaders Marketing Priorities % of Respondents Reducing the cost of contacts/ leads/customer acquisition Increasing revenue derived from existing customers Reaching the relevant audience Converting contacts/ leads to customers Increasing number of contacts/leads Proving the ROI of our marketing activities 0 5 10 15 20 25 Leadership Practitioner
9. HUBSPOT State of Inbound 2014 9 Agencies are leading the pack. Inbound marketing performance is up across the board. More companies are running inbound than ever before. More are measuring ROI and more are enjoying improved ROI. Inbound is expanding into other lines of business, and those departments are experiencing positive results. Its even driving revenue globally. But the group thats setting the standard is marketing agencies, who are outpacing vendors by sourcing nearly half (47%) of all leads through inbound channels. The era of inbound selling has arrived. Inbound is no longer limited to just marketing. More than 25% of respondents reported that their organizations sales teams practice inbound, and its not just lip service. Contrast the two charts below, and youll see that sales professionals are far more inbound than are marketers who favor outbound practices. 4.) 5.) AGENCIES VS. VENDORS Marketing agencies are most effective at driving leads through inbound channels % of Respondents Industry Vendors Agencies 0 10 20 30 40 50 60 70 80 Primary Lead Source = Outbound Primary Lead Source = Inbound WHICH LEAD SOURCES HAVE BECOME MORE IMPORTANT (OVER LAST 6 MONTHS) Outbound marketers are placing minimal importance on core inbound channels Lead Source % of Respondents Social Media Blogs SEO Email Marketing PPC Trade Shows Traditional Adve